I. INTRODUCTION AND STATEMENT OF PURPOSE
The Commission institutes this formal investigation to determine whether the named Respondent, Pacific Gas and Electric Company ("PG&E"), violated any provisions of the California Public Utilities Code, Commission rules, general orders, or decisions, federal regulations, or other applicable rules or requirements pertaining to the operation of its natural gas transmission pipeline system in or near locations of higher population density. This Order Instituting Investigation ("OII") will determine whether PG&E's natural gas transmission pipeline system was safely operated in areas of greater population density or other areas identified as High Consequence Areas ("HCAs") pursuant to 49 Code of Federal Regulations ("C.F.R."), §§ 192.5 et seq.
This investigation will also review and determine whether PG&E properly and safely reviewed, on a regular basis, its natural gas transmission pipelines to identify areas of increased population density so as to modify its maximum allowable operating pressures (taking pressure gradient into account) commensurate with the actual class location, to replace pipeline segments with stronger pipe commensurate with the actual class location, to review and study changes in population density affecting pipeline design, construction, and testing procedures, and to review the physical condition of pipeline segments including the operation and maintenance history of pipeline segments.
The Commission enforces a variety of federal and state laws that impose safety requirements pertaining to the design, construction, inspection, testing, operation, and maintenance of the intrastate natural gas transmission pipeline systems of California utilities. The purpose of the federal Pipeline Safety Act is "to provide adequate protection against risks to life and property posed by pipeline transportation and pipeline facilities." (49 U.S.C. § 60102(a)(1).) "To accomplish this purpose, the federal Pipeline Safety Act establishes minimum safety standards." (Northwest Gas Ass'n v. Washington Utilities & Transportation Commission (2007) 141 Wn.App. 98, 103, 168 P.3d 443 review denied, Northwest Gas Ass'n v. Washington Utilities & Transportation Commission (2008) 163 Wn.2d 1049; see also 49 C.F.R. § 192.1.) The Commission is free to adopt more strenuous safety standards.
The Respondent in this proceeding is PG&E, a privately owned public utility subject to the safety and rate jurisdiction and regulation of this Commission, California law, and the Commission's general orders, rules, and decisions, and the minimum federal standards for the transportation of natural gas by pipeline previously mentioned. (See 49 C.F.R. §§ 192.5 et seq.) PG&E operates approximately 6,438 miles of natural gas transmission pipeline which includes 1,059 miles of HCAs1-50 miles
in class 1 locations,2 29 miles in class 2 locations,3 945 miles in class 3 locations,4 and
4 miles in class 4 locations.5 Class location designations and their definitions are discussed infra. Federal minimum standards for natural gas transmission pipelines at
49 C.F.R. §§192.5 et seq., apply to these locations on PG&E's gas transmission pipeline system. Federal transmission pipeline safety standards were first adopted by the United States Department of Transportation ("U.S.D.O.T.") in 1970.
The Commission's General Order ("G.O.") 112 "Governing the Design, Construction, Testing, Operation, and Maintenance of Gas Gathering, Transmission, and Distribution Piping Systems" was adopted in 1960. Following the passage of federal pipeline safety regulations in 1970, G.O. 112 was modified to "automatically incorporate all revisions to the Federal Pipeline Safety Regulations, 49 C.F.R. Parts 190, 191, 192, 193, and 199 with the effective date being the date of the final order as published in the Federal Register." (G.O. 112-E § 104.)
However, even before the Commission issued the original version of G.O.112 and the U.S.D.O.T. adopted minimum safety standards, pipeline operators relied on consensus standards from industry organizations such as the American Standards Association and the American Society of Mechanical Engineers ("ASME"), particularly ASME standard B31.1.8, Standard Code for Gas Transmission and Distribution Piping Systems. This ASME standard B31.1.8 would have applied to PG&E's pipeline system before government regulations were adopted. It was modified in 1955 to include the four-tier population density-based class location system set forth in 49 C.F.R. §§ 192.5
et seq., described above. (See the NTSB's San Bruno Accident Report at p. 47.)
1 See the NTSB's Accident Report on PG&E's Natural Gas Transmission Pipeline Rupture and Fire, San Bruno, California, Sept. 9, 2010, NTSB/PAR-11/01, PB2011-916501 ("NTSB's San Bruno Accident Report"), adopted August 30, 2011, at p. 51.
2 A Class 1 location generally is any class location unit with 10 or fewer buildings intended for human occupancy. A unit is defined as a location extending 220 yards on either side of the centerline of any continuous 1-mile length of pipeline. (49 C.F.R. § 192.5(b)(1).)
3 A Class 2 location generally is any class location unit having more than 10 but fewer than 46 buildings intended for human occupancy. (49 C.F.R. § 192.5(b)(2).)
4 A Class 3 location is any class location unit having 46 or more buildings intended for human occupancy. (49 C.F.R. § 192.5(b)(3).)
5 A Class 4 location is any class location unit where buildings with four or more stories above ground are prevalent. (49 C.F.R. § 192.5(b)(4).) See also: NTSB's Accident Report, Pacific Gas and Electric Company, Natural Gas Transmission Pipeline Rupture and Fire, San Bruno, California, Sept. 9, 2010, NTSB/PAR-1101, PB2011-916501, adopted August 30, 2011, at p. 51.
